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Subject:  Re: Will Cyprus do a deal? Date:  3/24/2013  6:19 PM
Author:  warrl Number:  418781 of 479861

Now, since it is a virtual 100% certainty that every major depositor will flee Cyprus as soon as possible with as much of their cash as possible - and even reportedly 70% the local depositors have applied to remove all their cash - there is no real compelling reason for Cyprus not to simply declare it will not stand behind its obligations (outright default) and accept the inevitable expulsion or withdrawal from the euro zone.


Cyprus is a bit different from Greece or Italy. Cyprus' government has been, comparatively, fairly frugal. Cyprus is in reasonably good shape to meet all of its obligations except one: its deposit-insurance commitment. It's Cyprus' BANKS that are in deep kimchee, because they hold large quantities of Greek government bonds.

One option for Cyprus - one that the EU and Russia desperately want them to not even realize is avail